HSBC is looking to launch an open-ended protected fund this autumn which will actively invest in mix...
HSBC is looking to launch an open-ended protected fund this autumn which will actively invest in mix of FTSE 100 equities and cash.
Designed by director of structured products, James Chu, the Oeic will carry a 90% capital guarantee and will be managed by the French firm Sinopia Asset Management. It a subsidiary of the HSBC Group, which currently runs a number of open-ended structured products in France.
While the final details of the product have yet to be decided, however the equity and cash elements in the portfolio will be rebalanced to make sure the net asset value cannot fall by more than 10% in a day.
If the markets were to fall HSBC would put a higher proportion in cash to provide greater downside protection.
These calculations and adjustments will be carried out on a daily basis and every quarter the guarantee will be re-based upwards if the NAV has risen.
The majority of protected products in the UK are closed ened but investors in the HSBC fund can exit at any stage at the NAV at the time.
Axa Investment Management is also market-testing an open-ended structured product, designed to give participation in stock market growth as well as protection from downturns.
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